QUESTION 7
Ana consumes only two products, Burritos (B) and Pizzas (Z). Her utility function is : B2Z. The prices of burritos and pizzas are both 5 and her income is 100. How many Burritos will Ana buy?
QUESTION 7 Ana consumes only two products, Burritos (B) and Pizzas (Z). Her utility function is...
Ana consumes only two products, Burritos (B) and Pizzas (Z). Her utility function is The prices of burritos and pizzas are both 5 and her income is 100. How many Burritos will Ana buy?
Jake consumes only two products. Bagels (B) and Toast (T). His utility function is B2T. The prices of both products are 5. His income is 100. How many bagels will Jake buy?
Lisa consumes only pizzas and burritos. In equilibrium, her marginal utility of pizza is 32 and her marginal utility of a burrito is 24. The price of a pizza is $4. *Round your answer to 2 decimal places. The price of a burrito is $____.
Lisa consumes only pizzas and burritos. In equilibrium, her marginal utility of pizza is 28 and her marginal utility of a burrito is 21. The price of a pizza is $3. Instructions: Round your answer to 2 decimal places. The price of a burrito is ___?
Marta consumes only goods X and Y and faces the following utility function: U=7 X+4 Y. The marginal utility for X is MUX=7 and the marginal utility for Y is MUY=4 . The price of X is $10 and the price of Y is $50. Marta has an initial budget of $200. How many of X and Y will Marta buy given her utility function, her budget, and the prices? X= Y= Suppose that the government places a restriction on X...
Linda consumes only two goods, x and y. Her utility function ? = ??. The initial price of x is $9 and the price of y is $1, and her weekly income is $72. Suppose that the price of x subsequently drops to $4. a) Find the initial consumption basket A when the price of x is $9. b) Find the final consumption basket C when the price of x is $4. c) Find the decomposition basket B. d) Find...
Caleb consumes only two goods, X and Y, and faces the following utility function: U=XY. His initial budget is $800, and the prices of X and Y are $12.5 and $2. What is the marginal utility for X? What is the marginal utility for Y? **Most answers should be round numbers. Answer everything to 1 decimal place, if need be** What are the amounts of X and Y that will maximize Caleb's utility? X = Y = How many X...
Clara consumes two goods x and y. Suppose her utility function is given as U(x,y)=min{3x,4y} The prices of the two goods are Px for good x and Py for good y. If her monthly income is $M, Derive her uncompensated demand function for good x Derive her uncompensated demand function for good y Derive the cross-price effects and show that the two goods are complementary goods.
6. A Wisconsin resident Sarah only consumes two goods: Bananas (B) and Apples (A). Her utility is given by the formula: U AB You are also told that Sarah's marginal utility for consuming bananas and her marginal utility from consuming applies are given by the following equations: Marginal Utility for Bananas: MUB A Marginal Utility for Apples: MUA B a) Given this information and holding everything else constant, fill out all the missing information in the table below. Utility 100...
3 Clara consumes two goods x and y. Suppose her utility function is given as U(x,y)=min{3x,4y} The prices of the two goods are Px for good x and Py for good y. If her monthly income is $M, Derive her uncompensated demand function for good x Derive her uncompensated demand function for good y Derive the cross-price effects and show that the two goods are complementary goods.